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Key Disposal, Inc. Case Settles for $500,000

This page last reviewed August 10, 2010

In August
2009, Key Disposal, Inc., a Montebello, California
based waste hauling
company, and its president stipulated to a total penalty of $500,000
for
violating air quality regulations.An
ARB investigation showed that Key Disposal, Inc., failed to properly
self-inspect the portion of their diesel truck fleet that falls under
the
Periodic Smoke Inspection Program (PSIP) and failed to properly
retrofit
adequate numbers of diesel vehicles under the Solid Waste Collection
Vehicle
(SWCV) Program.ARB
initially offered to
settle the case at a substantially lower amount.However, no agreement was reached, so the
Office of the Attorney General for the State of California
brought an action in Los Angeles
County Superior Court against Key Disposal, Inc., John Katangian, and
Shelline
Katangian on behalf of ARB.This
action
sought penalties per day of violation, per vehicle, which is authorized
pursuant to Health and Safety Code section 39674.A court-appointed mediator was unable to
negotiate an agreement.Not
until the
day of trial did Key Disposal Inc. and the Katangians agree to settle
the
matter.Key
Disposal, Inc. and John
Katangian will pay a total of $250,000 and the balance will be stayed,
provided
defendants bring their entire fleet of vehicles into compliance with
the SWCV
and PSIP rules by September 29, 2009, defendants thereafter maintain
their
entire fleet in full compliance with the SWCV and PSIP rules, and John
Katangian and other responsible employees complete the California
Council on
Diesel Education and Technology (CCDET) class.